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Nova Luxa is described as a limited constitutional monarchy: the Prince is the Head of State and appoints all Ministers, the Central Magistrates, and the Premier - the Head of Government.

The fifteen-member Great Council - elected by direct vote from all those over 18 years of age - acts as the Principality's legislature. The Prince chooses the Premier and Ministers from this body. Members of the Grand Council are mandated to remain nonpartisan, but unofficially have party affiliations.

Nova Luxa is an unitary state - that is, it has no further subdivisions like states or provinces. The cities and villages of the territory also have direct-elected mayors. The city of Nova Luxa, for instance, is governed since 301 by Phillip Pataneira.

Prince Emanuel Victor Sergio, head of the ruling House of Sergio, is the current monarch of Nova Luxa. He was installed on 15th of October, 299. A former statesman, the Prince served as territorial delegate to Ordland, and his humanitarian work in Nova Luxa is well known.

The Sergio family has an extended, traceable, history in Nova Luxa. Their ancestry is traceable to among the first groups that arrived in the area more than three hundred years ago.

Other members of the royal family include Princess Consort Marguerite, Crown Prince Victor, and Princess Catalina.

Long occupied by the indigenous Mixtuptecan peoples, the area was the site of the ancient city of Xicuahuatepec (Sandy Hill or Dry Hill Area).

Longerathian explorers first landed in Nova Luxa in 236 BP. After news spread of the fertile lands a number of Longerathian explorers looked to exploit the region. Captain James Owynkurt received financial support from the East Melania Company, who financed the voyage. Owynkurt landed in 231 BP and founded the settlement of Cape Glory.

The region of Nova Luxa saw huge waves of settlers after 5 AP by Longerathian refugees fleeing from The Plague. Displacing the original tribes from the area, the settlers founded the walled city of Nova Luxa on 15 AP.

The Principality of Nova Luxa was established in 33 AP.

By 40 AP, with the Mauretanian invasions, instead of simply invading and overrunning the place, the recently-forming Empire of Mauretania offered Nova Luxa a suzerainity-vassalage agreement. On 70 AP, the Principality was made into the Province of Zab (which over time came to include most of the present-day eastern coast of San Patricio), while the heads of the House of Sergio became rulers of the province. The Sergios didn't complain with it, the Mauretanian Emperors were happy with not having to worry about it.

With the dissolution of the Empire after the Mauretanian War in the late 290s, Nova Luxa proper voted for becoming one of the provinces of the Empire of Mauretania under Ordlandic Protection. The enclave became home to the Ordlandic democratic government-in-exile following the military coup in Newton on December 299. On February 300, Ordland considered transfering sovereignity over Nova Luxa to the Greater Zartanian Empire in exchange of a major arms deal - even though a number of Zartanian troops were indeed stationed in Nova Luxa during this period, the deal failed to pass a referendum on the same month.

Nova Luxa is an Ordlandic enclave located on the eastern coast of San Patricio. It has 53.900 inhabitants (306 census) - of those, 36.230 live in the historical capital city of Nova Luxa. Of the remaining 17.670, 15.560 live in the recently-built planned city of Luxburg, home to most of the industrial facilities and the only deep-water port in the region, while the rest live in smaller villages scatterred through the Principality.

Roughly 33% of the Novaluxians are Mounists. Cruisans make up 26% of the population, while Emethitists are 9%. Members of other religions (and atheists) make up the remaining 32%.

Cruisanism is the Principality's state religion, even though the city has a great importance to Mounism: the Kaabur building is located there, housing the Pink and Purple Stone, considered the last remaining piece of Heaven in Vexillium for Mauretanian sect Mounism.

Defence is the responsibility of Ordland, via the Mauretanian Expeditionary Force. In 301, the Nova Luxa detachment of the MEF was led by Field Marshall John Glideswell-Oliveira, Duke of Joos, relieved from command after the 301 Nova Luxa bombing. An 800-man-strong Royal Guard acts as the local police and paramilitary authority.

The Economy of the Principality is driven by two main industries: Tourism - based mainly arround the many cassinos and historical sites - and Banking.

With 40 banking establishments, 70 windows, 3 representative offices and 7 financial companies, the banking sector constitutes a large part of Nova Luxa's financial activity. Nova Luxa offers investors and businessmen an exceptional and secure lifestyle while simultaneously offering them all of the advantages of an attractive fiscal system.

The main feature of Nova Luxa's fiscal system is the total absence of direct taxation (except for companies earning more than 25% of their turnover outside of the Principality and companies whose activities consist of earning revenus from patents and literary or artistic property rights, both types are subject to a tax of 33.33 % on profits). Persons residing in Nova Luxa (except Ordlandic nationals) do not pay tax on income, on betterment or on capital. There is no direct tax on companies apart from the tax on profits mentioned in the previous cases.

Although Nova Luxa is currently under the protection of Ordland, its territory is also claimed by the Greater Burovian Realm Dominion of Uudangwuu, although no specific actions have been taken to assert the claim. A similar claim exists for the island of Joos.